Question
Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A Book
Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A Book rint (A) Cash Interest Paid (B) Period Interest (E) Carrying Expense (c) Period Ending $780,000 x 9.0% 6/12 (E) x 8.0% x Amort. (D) Unamortized 6/12 (A) (B) Balance Value $780,000+ (D) rences Dec. 1/231 June 1/23. $49,371 $829,371 $ 35,100 $ 33,175 $1,925 47,446 827,446 Dec. 1/29 35,100 32,018 3,082 17,362 797,362 June 1/30 35,100 31,894 3,206 14,156 794,156 Dec. 1/30 35,100 31,766 3,334 10,822 790,822 June 1/31 35,100 31,633 3,467 7,355 787,355 Dec. 1/31 35,100 31,494 3,606 3,749 783,749 June 1/32 Totals: 35,100 $631,800 31,351 3,749 e 780,000 $ 582,429 $49,371 "Adjusted for rounding (For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Required: 1. Bond Issue A Were the hond A issued at a premium and/or discount?
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